Kitchener-Waterloo Real Estate Market November 2021

Prices continue to increase with strong home sales in October.

A total of 593 residential homes sold last month through the Multiple Listing Service® (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR).

This was a decrease of 11.1 per cent compared to last October and an increase of 16.5 per cent compared to September.
 
“While not as red-hot as last year’s record-breaking October, it was still a higher-than-normal number of home sales for the month, and the second-highest October on record,” says KWAR’s president, Nicole Pohl.

“The number of listings coming on the market can scarcely keep up with the demand for homes in Waterloo region, and the continued price growth we see in October reflects this.”   
 
Total residential sales in October included 348 detached (down 13.2 per cent from October 2020), and 84 condominium units (down 8.7 per cent). Sales also included 40 semi-detached homes (down 9.1) and 121 townhouses (down 6.9 per cent).     
 
In October, the average sale price for all residential properties in the Kitchener-Waterloo area was $841,764. This represents a 32.9 per cent increase over October 2020 and a 6.1 per cent increase compared to September 2021.

The average price of a detached home was $997,654. This represents a 34.2 per cent increase from October 2020 and an increase of 3.5 per cent compared to September 2021.

The average sale price for an apartment-style condominium was $464,738. This represents an increase of 18.1 per cent from October 2020 and a decrease of 7.1 per cent compared to September 2021.

The average sale price for a townhouse was $693,324. This represents a 39.4 per cent increase from October 2020 and an increase of 7.3 per cent compared to September 2021.

The average sale price for a semi was $726,313. This represents an increase of 34.6 per cent compared to October 2020 and an increase of 5.6 per cent compared to September 2021.
 
KWAR cautions that average sale price information can be useful in establishing long-term trends but should not be used as an indicator that specific properties have increased or decreased in value.

The MLS® Home Price Index (HPI) provides the best way to gauge price trends because averages are strongly distorted by changes in the mix of sales activity from one month to the next.
 
The MLS® HPI composite benchmark price for all residential properties in Kitchener-Waterloo was $803,900 in October. This represents a 34.3 per cent increase over October 2020 and a 2.5 per cent increase compared to September 2021.

The benchmark price for a detached home was $887,500. This represents a 35.5 per cent increase from October 2020 and 2.1 per cent increase compared to September 2021.

The benchmark price for an apartment-style condominium was $406,400. This represents a 22.7 per cent increase from October 2020 and a 3.5 per cent increase compared to September 2021.

The benchmark price for a townhouse is $603,900. This represents a 42.5 per cent increase from October 2020 and a 3.8 per cent increase compared to September 2021.
 
“With ongoing constraints on supply versus demand, home prices continued to accelerate in October,” says Pohl.
 
There were 621 new listings added to the MLS® System in KW and area last month, a decrease of 18.4 per cent compared to October of last year, and a 12.1 per cent decrease compared to the previous ten-year average for October.
 
The total number of homes available for sale in active status at the end of October was 288, a decrease of 36 per cent compared to October of last year, and 76.5 per cent below the previous ten-year average of 1,285 listings for October.
 
The number of months of inventory remained at 0.5 in October. Inventory has settled at under 1 month for twelve consecutive months. The number of months of inventory represents how long it would take to sell off current inventories at the current rate of sales.
 
The average number of days to sell in October was 10 days, compared to 13 days in October 2020 and a previous 5-year average of 22 days.
 
“Affordability throughout Waterloo Region continues to be challenged, creating significant barriers especially for many people who are just trying to get their foot in the door of the housing market,” says Pohl.

“We are urging all levels of government to work together to tackle the supply issue facing housing markets across the country and right here in Waterloo region.”

The K-W Shoebox Project for Women

The Shoebox Project for Women collects and distributes gift-filled shoeboxes to women in K-W who’ve been impacted by homelessness.

This amazing grassroots organization was founded 10 years ago in Toronto and now reaches out to women all across Canada and the U.S. including right here in Kitchener-Waterloo!

Special occasions such as Christmas can be particularly challenging for women who’ve been displaced from their homes and estranged from their families.

It’s a small gesture but a Shoebox filled with gifts is a powerful reminder for women living in shelters that they haven’t been forgotten about and that they are still valued and respected members of our community.

This year, you can fill a virtual shoebox by selecting from a variety of online items that range from deodorant and lip balm to socks and winter hats. You can even add a personalized note for that extra special touch.

Some of the agencies in Kitchener-Waterloo supported by The Shoebox Project include The Healing of the Seven Generations, Marillac Place and YWCA Kitchener-Waterloo.

The purchase of your custom-designed shoebox is completely tax-deductible and 100% of the funds will be used by volunteers to help get gift cards and essentials into the hands of some of the most vulnerable women in the K-W area.

This small gesture of kindness will make an immediate positive impact! The K-W Shoebox Project is a unique opportunity to give back as it’s a powerful reminder for women who are struggling in the Kitchener-Waterloo area that they haven’t been forgotten about.

GIVE YOURSELF SOME CREDIT

It’s essential to know your credit score before you start shopping for a home.

The home of your dreams has finally hit the market! You anticipate it’ll be easy to get a mortgage but if your credit’s not in great shape, your dream home may remain just a dream.

It’s important to have a clear understanding of your credit score long before you get pre-approved for a mortgage and start shopping for homes.

A solid credit score makes you more attractive to financial institutions which means you’ll enjoy better rates and terms that can save you thousands of dollars in interest! Here are a few steps you can take to improve your credit score:

Order It Up
Order a fresh copy of your current credit report from Equifax so that you can review it.

Clean It Up
If there’s a blemish on your report, reach out to the creditor so that you can try and clear it up.

Consistency is Key
Lenders look for a long track record of consistent payments so if you’re trying to establish a solid credit score, it’s best to start early.

Know Your Limit
It’s important to show that you’re responsible with your credit so don’t continuously max out your cards.

Payment History
It’s extremely important to pay your bills on time. If you’re consistently late, it’ll raise red flags and dramatically affect your credit score.

Number of Applications
The number of times you’ve applied for credit can affect your score so don’t apply for credit unless you plan on using it.

How Much You Owe
Lenders don’t want to lend to someone with a whack of financial obligations so pay off smaller debts and avoid any big credit charges such as a car purchase before buying a home.

Knowledge is power when it comes to your credit score so find out where you stand ahead of time, even if you don’t think there are any issues.

If you know your credit’s in need of repair, start fixing it right away as a good credit rating will entitle you to preferred rates which can amount to thousands of dollars in interest savings.

Finally, it’s never too early to start thinking about your mortgage options as there may be certain plans you could qualify for if you apply for them in advance so please reach out so that we can discuss your options.

SURVIVING THE STRESS OF THE SEASON

Christmas is just around the corner so it’s time to start getting ready!

It’s easy to get stressed out during the holiday season but a little advance planning will make it easier for you to relax and enjoy yourself! Here are a few ideas that’ll help relieve the seasonal stress:

Shop Early
Shopping ahead of time (with a list!) means less stress later on. You’re also more likely to stay on budget rather than panicking at the last minute and overspending.

Shop Local
Our local businesses have been through a lot but you can help reduce their stress this holiday season by hitting the local shops instead of buying from the big box stores.

Keep it Together
Keep wrapping paper, tags, tape, scissors, cards and stamps in one central spot. If you wrap as you go instead of doing it all at once, it’ll help get you into the Christmas spirit!

Expect the Unexpected
Make sure to have a few pre-wrapped “stand-by gifts” on hand for those unexpected occasions when a gift is needed immediately.

Although the holiday season is full of joy and laughter, it also comes with increased demands that can weigh heavily upon us. If you manage the pressure by planning ahead, you’ll be able to relax and enjoy the season instead of just surviving it.